"With everybody working together," Maroney said, "we really came through in a positive way."

Savings also were found in unexpected sources.

For example, a three-year federal grant that covered salaries for 32 police officers expired. The city budget picked up those salaries.

But then word came that the city could use some of the grant money past the three-year deadline. Then they were given more grant money.

Just like that, $1 million was freed up.

Or, how about this one:

Treasurer Marty Eubank has always mailed collection notices for delinquent personal property and real estate taxes in early July. He always had to wait until the new budget year because he had already spent the money set aside for postage.

This year, the city chipped in an extra $10,000 for postage. Collection notices went out about three weeks earlier.

And just like that, $1.1 million that would not have been collected in time to cover the deficit showed up in the final numbers.

Money also came from what budget people call "one-time sources." In other words, money that can't be counted on to show up again in future budgets.

For example, city officials collected deferred interest payments on the Applied Research Center.

In total, one way or another, city officials cobbled together an extra $11 million.

How will the city spend the $11 million surplus?

Some money goes back to where it belongs.

Money saved from not replacing vehicles - about $1.6 million - will be used to replace that equipment.

A nearly $1.3 million health insurance rebate will be placed in a sort of savings account. City officials do this regularly because in some future year they might have to pay out for health insurance.

The city's school division saved $1.1 million - double what was expected - when asked to cut costs. That money, plus $700,000 extra, was returned to the schools in the current budget, which went into effect July 1, 2000. The $700,000 extra comes from the surplus.

An independent consultant has recommended that the city increase its self-insurance reserves. That's where $1.6 million will go. The consultant recommends reserves of about $12 million. With the surplus, the city will have reserves of $6.5 million.

Another $1 million will be given to City Council to spend as it sees fit. If that money isn't spent one year, council members have the opportunity to spend it the next.

That leaves about $5 million.

What happens with the remaining $5 million?

City Council will likely consider how to spend that money sometime in January.

Some money could go to budget requests denied money in the past year.

Perhaps buy a police car. Renovate a city park.

But Maroney said he won't recommend how to spend the money until sometime in the spring.

He's concerned that state officials, who are facing their own budget constraints, might shortchange localities. He also wants to make sure the city's finances hold steady with its current $506 million budget.

"When you look at the total budget," Maroney said, "$5 million is not a lot of money."

Fred Carroll can be reached at 247-4756 or by e-mail at fcarroll@dailypress.com